In November 2020, Shanghai Gas (Group) Co.,Ltd. ("Shanghai Gas") and Towngas China Company Limited ("Towngas China") signed an Equity Cooperation Agreement. Shanghai Gas introduced Towngas China as its strategic investor by means of capital increase to deepen its mixed-ownership reform. After the completion of the capital increase, Towngas China will hold 25% shares in Shanghai Gas.
Shanghai Gas is one of the "double-hundred enterprises" listed in the "double-hundred action plan" of the State Council on the reform of state-owned enterprises, and is also an enterprise under the pilot program of "mixed-ownership reform" of the National Development and Reform Commission. The mixed-ownership reform of Shanghai Gas is one of the key tasks of Shanghai's reform of state-owned enterprises. The "mixed-ownership reform" plan of Shanghai Gas was approved by the Shanghai Municipal State-owned Assets Supervision and Administration Commission in October 2018. At the end of 2018, Shenergy underwent restructuring and division of the former Shanghai Gas Group, and completely included the natural-gas-related business in the newly established Shanghai Gas. Shanghai Gas is responsible for providing gas upstream procurement, gas source balance, routine dispatch, emergency peak shaving, downstream sales, consumer services and other supporting services in the whole municipality. Meanwhile, it also takes functions as the core platform for pushing forward the mixed ownership reform. In 2020, Shanghai Gas introduced Towngas China as its strategic investor through public listing.
Llinks as legal counsel of Shanghai Gas, has provided legal services including due diligence, design and participation in feasibility study of spin-off plan, drafting of transaction documents and negotiations for the mixed-ownership reform of Shanghai Gas.
